Remuneration Policy

Nordea Funds has a total remuneration approach to compensation that recognizes the importance of well-balanced but differentiated remuneration structures, based on business and local market needs, as well as the importance of remuneration being consistent with and promoting sound and effective risk management not encouraging excessive risk-taking or counteracting Nordea’s long-term interests or the interests of the funds managed by Nordea Funds.

In Nordea Funds, ESG is a  part of our remuneration models to cater for commitment and engagement in sustainability among our employees. ESG is integrated in our remuneration polices  in the design and long termism of the remuneration structure, but also in relation to how we govern remuneration policies and decisions internally in a sustainable way.

Nordea Funds' Remuneration Policy shall

Support Nordea Funds’ ability to recruit, develop and retain highly motivated, competent and performance-oriented employees and hence support the Group strategy;

Ensure that employees are offered a competitive and market aligned total reward offering;

Support sustainable results and the long-term interests of the shareholders; and

Ensure that remuneration in Nordea Funds is aligned with efficient risk management, Nordea Funds’ Purpose and Values and applicable regulations

All employees on variable pay scheme are measured against both qualitative as well as quantitative targets suitable for their position and tasks. All employees have performance goals linked to risk and compliance performance which require adherence to high standards to our internal policies. Goal setting and/or performance assessments support the efforts to integrate the risk that environmental, social or governance events or conditions could cause, if they occur, an actual or a potential material negative impact on the value of the investment.

Nordea Funds’ remuneration components – purpose and eligibility

Nordea Funds' remuneration structure comprises fixed remuneration and variable remuneration:

Fixed remuneration

Fixed Base Salary which should remunerate for role and position and is impacted by: job complexity, responsibility, performance and local market conditions.

Allowance is a predetermined fixed remuneration component. Fixed base salary is, however, the cornerstone for all fixed remuneration. Allowances are not linked to performance or otherwise incentivising risk taking.

Pension and Insurance aims at ensuring employees an appropriate standard of living after retirement as well as personal insurance during employment. Pension and insurance provisions are in accordance with local laws, regulations and market practice either collectively agreed schemes or company determined schemes, or a combination thereof. Nordea aims to have defined contribution pension schemes.

Benefits in Nordea are awarded as a part of the total reward being either individually agreed or based on local laws, market practice, collective bargaining agreements and company determined practice.

Variable remuneration

The following variable remuneration programmes are offered to selected Nordea employees, and you can read more about them on under Variable remuneration programmes.

Bonus schemes is offered only to select groups of employees employed in specific business areas or units as approved by the Board of Directors. The aim is to ensure strong performance and to maintain cost flexibility for Nordea.

Recognition Schemes is offered to employees to recognize extraordinary individual or team performance. Identified Staff and employees eligible for other variable remuneration components (excluding Profit Sharing Plan and Recommendation Programme) are not eligible for Recognition Scheme awards.

Profit Sharing Plan (PSP) is offered group-wide to all Nordea employees but not to Identified Staff and employees who are eligible for any of Nordea’s other formal variable remuneration plans. For eligible employees, the Profit Sharing Plan is offered irrespective of position and salary, and aims to reward employees based on achievement against pre-determined financial goals as well as goals relating to customer satisfaction.